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1:02 pm
Thu June 25, 2009

Auto analysts predict stronger sales in June

Lansing, MI – Auto industry analysts in Michigan are predicting stronger vehicle sales for the month of June. But that news may be tempered by how consumers respond to General Motors' bankruptcy restructuring.

AUDIO: Sean McAlinden is the chief economist with the Center for Automotive Research in Ann Arbor. He says between January and May, General Motors reduced its inventory by more than half clearing the way for a burst of production this summer.

McAlinden says Lansing-made car sales have been especially solid but he notes that may not be enough to sustain the company if consumer confidence wanes.

"Whether customers will, after they come out of bankruptcy in July or August, accept the company and forgive, and what size company will that be?" McAlinden says. "And it's a challenge to all of us."

Michigan is vying with Wisconsin and Tennessee to land a deal to build a new line of small GM cars. The automaker is expected to make its decision by the end of the month.